Glossary

Excessive fee claims are made against fiduciaries responsible for overseeing 401(k) plans for allowing the outside administrator to charge excess fees.

An excess ad damnum letter is a letter sent to each defendant in a lawsuit who is covered under the liability policy, advising that the amount sued for exceeds the policy limits.

Excess and surplus (E&S) lines insurance is any type of coverage that is placed with a nonadmitted insurer (an insurer not licensed to do business in a given state) but legally allowed to provide coverage under certain conditions. Risks placed in E&S lines may have characteristics that make them difficult to place in the standard market (e.g., adverse loss experience or unusual or high-hazard exposures). Captives sometimes qualify as E&S companies. Both primary and excess coverages can be purchased through the E&S market.

Excess cover is coverage for which limits apply once the amount of primary insurance under another policy has been paid.

Excess (XS) insurance is a policy or bond covering the insured against certain hazards and applying only to loss or damage in excess of a stated amount or specified primary or self-insurance.

Excess interest is interest credited to the policy account of an insured in excess of the minimum amount stated in the policy.

An excess liability "follow form" policy is excess insurance that is subject to all of the terms and conditions of the policy beneath it.

An excess liability policy is a policy issued to provide limits in excess of an underlying liability policy.

Excess limit is the highest amount of insurance that will be offered in a given situation in excess of basic limits.

An excess lines broker is licensed to place insurance not available in the domestic state through insurers licensed in states other than where the broker operates.